A manufacturer of fireworks has the following data for this year:

Units produced and sold 700,000

Sales revenue $ 6,402,000

Variable manufacturing expense $ 1,976,000

Fixed manufacturing expense $ 858,000

Variable selling and administrative expense $ 388,000

Fixed selling and administrative expense $ 128,000

Net operating income $ 52,000

Create a contribution margin (variable costing) income statement for the year and calculate the margin of safety percentage (ratio) for the company for the year.